On 1.1.16 machinery was purchased for ₹90,000. On 1.7.17 additions were made
to the amount of ₹30,000. On 31.3.2018, machinery purchased on 1.7.2017, costing
₹22,000 was sold for ₹18,000 and on 30.06.2018 machinery purchased on 1.1.2016
costing ₹32,000 was sold for ₹26,700. On 1.10.2018, additions were made to the
amount of ₹40,000. Depreciation was provided at 15% p.a. on the SLM.
Show the Machinery Accounts for three years from 2016-2018. (year ended 31st
December) And also, the company decides to change the method of depreciation from
SLM to WDV on 31st December, 2018. What will be the amount of depreciation for
2019? [5 Marks]
(c) from the following transactions, identify the capital and revenue nature of
transactions along with reasons.
i. Sale of car
ii. Obtaining of license for running the business
iii. Legal fees paid to acquire the land, which is current assets for the proprietor
iv. Sale of old-furniture used in the business of the proprietor
v. Insurance expenses paid and the coverage period of the insurance is 5 years.
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(c) from the following transactions, identify the capital and revenue nature of
transactions along with reasons.
i. Sale of car
ii. Obtaining of license for running the business
iii. Legal fees paid to acquire the land, which is current assets for the proprietor
iv. Sale of old-furniture used in the business of the proprietor
v. Insurance expenses paid and the coverage period of the insurance is 5 years.
transactions along with reasons.
i. Sale of car
ii. Obtaining of license for running the business
iii. Legal fees paid to acquire the land, which is current assets for the proprietor
iv. Sale of old-furniture used in the business of the proprietor
v. Insurance expenses paid and the coverage period of the insurance is 5 years.
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